mobileu.co.uk

Orange and T-Mobile sign merger agreement

The path has been paved for the creation of the UK's largest mobile operator, as bosses at Orange and T-Mobile sign on the dotted line to become a 50:50 joint enterprise.

Final completion of the agreement depends on its approval by regulators, but this is expected to happen within the first six months of next year. The combined company will hold a 37 per cent share of the UK's mobile market.

Representatives for both operators' parent companies have said the T-Mobile UK and Orange UK brands will continue as separate entities while alternative options are considered.

Timotheus Hoettges, chief financial officer at T-Mobile parent firm Deutsche Telekom, added that the partnership will "set new standards as the number one in the UK mobile market".

Gervais Pellissier, from Orange parent company France Telecom, remarked: "This is an important step towards our objective of establishing an excellent platform to deliver operational synergies and offer innovative and high-quality services to our customers."

It has been suggested by industry analysts that regulators will attach stringent requirements to the T-Mobile/Orange merger, for example an obligation for the operators to help provide rural broadband coverage across the nation.